Another chapter of the McGill and Feller Follies UPDATED

It's that time of year to write about the Zamagias property on the corner of Bower Hill and Washington Roads. I believe this project has been on the books for almost twenty years. We can't blame the current commissioners entirely. However the two individuals who have been involved from the beginning are Municipal Manager Steve Feller and Municipal Planner Keith McGill.

As Commissioner Fraasch has written on her blog post, Bower Hill/Washington Road Part II, the Commissioners will vote on December 9 to either extend the agreement for the ninth time with Zamagias or exercise their right to buy back the property. It only takes three votes to end this nonsense. I can't be sure, but I would think that Brumfield and Company would vote to extend the agreement for another year. They need all their unassigned funds for athletics. Much more money will be needed to complete the turf project at Brum Field.

Here are links to all the articles I have written about this topic.

Thursday, September 13, 2012

This is disgusting!

Friday, September 21, 2012

Letter to the Editor: The Importance of Being Earnest UPDATED 2x

Thursday, October 18, 2012

Informational Meeting about Zamagias Property

Monday, October 29, 2012

Zamagias meeting still on for tomorrow

Tuesday, October 30, 2012

Tonight's Zamagias Property meeting

Thursday, November 1, 2012

It's not a loan. It's a grant.

Thursday, September 26, 2013

Upper St. Clair doesn't fool around

Wednesday, November 20, 2013

Maybe moving to Dormont is a good idea

Tuesday, January 21, 2014

Comments on comments?

Tuesday, January 28, 2014

Don't try this at home UPDATED

Thursday, February 20, 2014

Another TIF in our future? UPDATED

Update December 5, 2014 3:47 PM As I predicted. From the December 9, 2014 Agenda:

DB (Dave Brumfield)  20. Consideration of an Eighth Amendment to the Agreement of Sale with Michael G. Zamagias Interests.

This amendment would extend Section 23.7 of the purchase agreement pertaining to“repurchase.” 

Recommended Action: Move to approve the Eighth Amendment to extend theprovision until December 31, 2015.

Another TIF in our future? UPDATED

There may be another Tax Increment Financing (TIF) in our future. According to the Trib, T line project gets scaled-back ideas in Mt. Lebanon, the development costs could be reduced with the use of TIFs.

Specifically, the analysis showed a $22.3 million “gap” between cost and value for such a development, said Dan Santoro, a vice president who runs Delta's office in Pine.
“There's no developer in the world who would come in and cover those costs,” he said, noting that grants or tools such as tax increment financing could close the gap slightly.

We have heard "TIF" mentioned over the Zamagias property across from St. Bernard's Church. Zamagias has defaulted and now the State (we, taxpayers) is stuck with the debt. From Wikipedia:

Although the TIF method has been discontinued in the state it began in, California, thousands of TIF districts still currently operate nationwide in the US, from small and mid-sized cities, to the State of California which will be paying off debt on old TIFs for years to come. As of 2008, California had over four hundred TIF districts with an aggregate of over $10 billion per year in revenues, over $28 billion of long-term debt, and over $674 billion of assessed land valuation.[2] TIF began in California in 1952, but the state has currently discontinued the use of them due to a couple of lawsuits.

I was not aware of this, but according to the Trib, the public can learn more about proposals for the site and make suggestions at a 6 p.m. hearing on March 10 in the commission chambers at the municipal building.

Update February 22, 2014 11:50 AM I had emailed the commissioners about the March 10 hearing, as reported by the Trib. Here is some more information from Eric Milliron, Economic Development Officer.

Commissioner Bendel requested that I email you regarding the public meeting on garnering community input on March 10th. I am the staff lead on this effort and can supply you with the most up to date information.

First, thank you for your interest in this project. I appreciate you wanting to know more about the meeting. I think it is important to make a clarification. The meeting is not a hearing. Rather, it is an opportunity for residents/stakeholders to provide valuable input towards the first of two Requests for Proposals (RFPs) to the development community. We are seeking information about what values we have in Mt. Lebanon for a project around the Mt. Lebanon T Station. Values is a broad term, but some issues that might arise are scale/massing of potential project, traffic impacts, parking, sustainability targets, etc.

There is a front page link to information on this meeting at => http://mtlebanon.org/ This link will provide additional information.

The meeting will be structured in the following format:

1. Brief History + Overview of Current Efforts at the proposed development site;
2. Review of relevant studies => TRID, AECOM Engineering Study and most recently the Delta Development market analysis (which will be a part of said RFP)
3. Open Discussion with audience to understand matters of interest.
4. Break Out Session(s) => We will aggregate matters of interest and break the audience into smaller working groups to develop thoughts in a digestible manner. Many of these thoughts could then be included in the RFP.

The goal of this session is to provide the development community an understanding of what the community expects from any potential project. Clearly, this information will be valuable to not only the development community, but Municipal officials as we work with all groups to develop around the aforementioned site. I expect that the product from this session will be brought to the Commission for their review and input. The information will also be brought to the Economic Development Council (EDC). The RFP crafted will be publicly advertised and will be found on the Municipal website. I'd be happy to let you know when this happens. If I had to guess (and I don't like guessing...) I'd say this should happen late March.

Based on the proposals received a second RFP will be issued that would expect more analysis from any potential developer.

This meeting is the first step in a longer journey to actualizing a good project that has the potential to not only offer new product in our central core, but potentially act as a catalyst for additional renovations and projects (where feasible).

There will be other public meetings as things move forward.

Following is a link to my presentation to the Commission on 1.14.14 => http://mtlebanon.granicus.com/MediaPlayer.php?view_id=3&clip_id=104&meta_id=3479 (minute 47 is where I discuss the meeting + RFP process).

If anyone has questions, here is Eric's contact information.

Don't try this at home UPDATED

Today's Trib slams Mt. Lebanon on Zamagias.

It is under Tuesday's Takes

Intervention's lesson: There's no better object lesson in the folly of “government economic development” than the mess that is the corner of Washington and Bower Hill roads in Mt. Lebanon. The latest proposal to develop this parcel has failed after Zamagias Properties defaulted on taxpayer-backed loans used to acquire the property. The “state,” at least for now, is left holding a $1.78 million bag. Worse, Zamagias gets to keep the property. Don't try this with your local bank.

Read more: http://triblive.com/opinion/editorials/5487663-74/center-lesson-whether#ixzz2rhogxgza 

Follow us: @triblive on Twitter | triblive on Facebook

Mt. Lebanon needs to exercise its buy back option and buy back this property. Zamagias Properties has the money and is getting away with it because they can. Commissioners, do the right thing.

Update January 30, 2014 10:20 AM Here are 9:31 AM's comments pictorially.

Comments on comments?

Last night's school board meeting was very interesting, as far as citizens' comments go. Topics included:

• Financial advisor 
• MTLSD does not take the preliminary budget seriously. We are the only school district that refers to it as a "fake budget."
• Trophy case
• Zamagias TIF
• Pool railing
• Pool locker room floor is slippery
• Meeting was not available for viewing last week.
• Agendas are not publicized before meetings
• Trouble with teacher at Howe School

Without naming names, I would like to hear more about the situation at Howe School. The mother was cut off at the knees by the president and solicitor when she was speaking. 

As far as the TIF goes, while one commissioner was removing her blog over the weekend, another commissioner posted this: Washington Park, corner of Bower Hill and Washington Road In December, Zamagias defaulted on their TIF loan. Mt. Lebanon has the opportunity to buy it back out of the Parking Fund, I believe. Please contact our commissioners, Senator Matt Smith's office, or Representative Dan Miller's office and share your opinion on this topic.

I would love to hear from Lebo Citizen readers about all these topics which were raised at last night's meeting. 

To listen to the meeting please visit Lebo Citizens podcast from MTLSD's January 20, 2014 meeting

Maybe moving to Dormont is a good idea

Look at what little old Dormont is doing. Developer negotiating to build apartments, parking garage near Dormont light rail stop

We have been fooling around with the hotel, waiting decades for Zamagias to develop property across from St. Bernard's, and nothing but talk when it comes to the TRID (Transit Revitalization Investment Districts) now being called something else, which I can't recall at the moment. Air rights?

Communities are passing us by, Folks. Just keep on thinking that we are number one on everything. I have been criticized for looking at Upper St. Clair. Now, I hope we can keep up with Dormont.

It's not a loan. It's a grant.

Sunday's Trib included an article about the Washington Park property, a.k.a. the Zamagias property. Tax-increment financing poses big risks in Pennsylvania

The apparent failure of Longvue and a residential development in Mt. Lebanon highlight risks inherent in projects backed by tax-increment financing plans, and they could cost state taxpayers at least $7.3 million.

It is costing Mt. Lebanon taxpayers, as well. The Mt. Lebanon School Board and Commission must approve giving up a portion of property tax revenues when authorizing a TIF.   

Neither the municipality nor the school district lost any money on the project, Feller said. Both collect taxes on the value of the unimproved land; only tax money from any buildings would go into the debt service fund.

Zamagias controls the land, through several extensions Mt. Lebanon commissioners granted; the company bought the site from the defunct Mt. Lebanon Parking Authority. The board in January granted the most recent extension, lasting until December 2013.

After consolidating its properties along Washington Road and Kenmont Avenue, Zamagias cleared the site, which remains empty.

Yes, Steve Feller is correct. However, as it was pointed out in a previous comment:

The Mt. Lebanon Parking Authority (MLPA) purchased the property during the 1970's for around $200,000 that it sold to Zamagias in 2005 for $520,000. That $520,000 was based on an independent appraisal by a state certified appraiser and agreed to by both buyer & seller.

There are also some interesting questions about the consolidation of Zamagias property parcels, County assessments, reassessments and owner appeals that I would like to see addressed by Municipal officials. In reviewing the County 2013 assessment website for the Zamagias properties (i.e. 098-P-100), one wonders how 8 former parcels that Zamagias paid a total of $1,520,000 for, reportedly with TIF loan proceeds, can be shown consolidated into a single parcel now comprising 1.7115 acres, has a cost basis of only $520,000, a 2012 assessed value of $609,100, and a 2013 reassessed value of only $428,000 that Zamagias is appealing as being too high ?

Now you see, Anonymous, why I rail against this and expose Posti...? You wonder why you aren't getting the fundraising support that you need. These decisions are costing us money. Don't forget to sign the petition.  

Links:
Letter to the Editor: The Importance of Being Earnest UPDATED 2x
This is disgusting!
Mt. Lebanon developer may avoid repaying tax-aided loan

Letter to the Editor: The Importance of Being Earnest UPDATED 2x

The following letter to the editor was submitted by Blog reader and Mt. Lebanon resident, Bill Matthews.

Several years ago, the Municipality embarked on a second journey to develop the property on Washington Road, across from where I attended first and second grade. We began our trip with an RFQ (Request for Qualifications). The thought was that by seeking out an established developer with the demonstrated credentials to build on this site, we would avoid the delays and ultimate failure experienced with the site's predecessor project. It was a good plan and we in fact received a response and proposal from one such firm.

Then we picked the other one. 

Zamagias Properties showed no experience developing residential condominiums when the firm was first selected to develop this property and handed more than $1,000,000 in TIF loan proceeds. Following a review of their website this morning, it appears not much has changed. Please see the attached letter I sent to the Commission regarding this project, more than six years ago. My letter includes the firm's original submission to demonstrate their competencies. 

The Municipality's web site indicates there will be a "Zamagias update" on October 22. It is time for the Commission to move on with a developer who maintains a successful track record for developing first class projects appropriate for this site. If the Commission elects to continue its partnership with this developer, it must also insist on the developer making good on the TIF loan. 

Bill

Update September 23, 2012 11:00 AM In response to today's 7:25 AM comment, Bill Matthews felt it was easier to post the documents rather than try to describe the repurchase agreement and extension.
Zamagias - MLPA Sales Agreement The repurchase section is on page 15 of the agreement.
Zamagias Agreement 6th amendment Note: The seventh amendment was in January 2012.

Update September 24, 2012 11:59 AM Here is supporting evidence of the conflict of interest mentioned in Bill Lewis' item number three of his 6:05 PM comment. Ballon Conflict of interest Ballon was the vice chairman of the Parking Authority and remained so until dismissed in July 2011.